China LPR-MLF Spread to Narrow: Daily Cites Analyst

The spread between China's 1-year LPR and 1-year MLF is expected to narrow, driving down LPR quotations even as the MLF interest rate remains unchanged, the Economic Information Daily reported citing Wang Qing, chief analyst at Golden Credit Rating. Even if the MLF rate is lowered, the range will be significantly lower than that in the first half of the year, Wang told the Daily. The PBOC is still expected to increase lending support for private and small companies and manufacturers in H2, even as the central bank left LPR unchanged for four months, the newspaper said citing analysts.